Reliance Signs for 2 Offshore Colombia
On Tuesday, Dec. 10, a technical evaluation agreement signed by Reliance Industries in 2005 was converted to Hydrocarbon Production and Exploitation Contracts with Agenda Nacional de Hydrocarburos of Colombia for two offshore blocks – Borojo North and Borojo South. These contracts will in due course be assigned to REP DMCC, a 100% subsidiary of Reliance.
The contracts include the exploration of two blocks located in the Pacific Ocean, west of Colombia, in water depths that reach up to 1,500 meters. Each block size is approximately 4,000 square kilometers. Reliance carried out comprehensive geological studies before selecting these blocks.
The contract provides a six year exploration period, which consists of four phases of 18 months each, and exit at the end of each phase. Throughout this period, Reliance is expected to drill up to two wells in each block. They will also conduct seismic, multibeam and heat-flow surveys. The exploration budget for the two blocks will be nearly US $50 million over the next six years if not exited in earlier phases.
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